Dan Ciruli Head of PM, Cloud Native Nutanix Confidential 1 One Platform For All Apps, Data and AI, Anywhere Thomas Cornely SVP, Product Management Nutanix Confidential One Platform to Modernize and Accelerate 3 Virtual Machines on External Storage Enterprise AI Cloud Native Apps Hybrid Multicloud Nutanix Confidential 15 Years of Innovation NCI, NCM NUS, NDB Biz Critical Apps Databases Modern Infrastructure AOS VDI Web-Scale Hyperconverged Infrastructure NC2 Nutanix Central Elastic DR Cloud Hybrid Multicloud ...

GenAI is expected to improve productivity, efficiency, and automation, with long-term ROI for Public Sector organizationsSAN JOSE, Calif., June 17, 2025 (GLOBE NEWSWIRE) -- Nutanix (NASDAQ: NTNX), a leader in hybrid multicloud computing, announced the findings of its seventh annual global Public Sector Enterprise Cloud Index (ECI) survey and research report, which measures enterprise progress with cloud adoption in the industry. The research showed that 83% of public sector organizations have a GenAI strate ...

Nutanix (NTNX) Update Summary Company Overview - **Company**: Nutanix - **Date of Briefing**: June 13, 2025 - **Speakers**: Thomas Cornelli (SVP of Product Management), Dan Cerulli (Senior Director of Product Management) Key Points and Arguments Industry and Market Dynamics - Nutanix positions itself as a platform for all applications, data, and AI, emphasizing modernization of existing VM-based infrastructure and future readiness for hybrid multi-cloud environments [4][5][6] - The company has transitioned from an appliance vendor to a software subscription vendor, partnering with major OEMs like Dell, HPE, and Cisco [7][8] - The focus is on enterprise AI, which is expected to drive a complete rethink of customer infrastructure, emphasizing the need for container-based applications and Kubernetes [13][14][15] Product Offerings - Nutanix's portfolio includes the Nutanix Cloud Platform (NCP), which integrates various services including unified storage and database automation [70][72] - The introduction of NKP (Nutanix Kubernetes Platform) allows for container management and is designed to run on various infrastructures, including bare metal and public clouds [39][44][49] - NKP is characterized as open and complete, allowing deployment flexibility and avoiding vendor lock-in [74][75] Customer Success Stories - Colynx, a logistics company, successfully migrated to NKP to avoid high costs from Broadcom, demonstrating the platform's effectiveness in complex environments [48][49] - A European public health agency adopted NKP for managing multiple Kubernetes clusters across various locations, highlighting its scalability and open-source capabilities [50][52] Competitive Landscape - Nutanix differentiates itself from competitors like VMware and Red Hat by focusing on the needs of operators and providing a unified experience across VMs and containers [63][65] - The company emphasizes the complementary nature of VMs and containers, asserting that both will coexist in enterprise environments for the foreseeable future [78][80] Future Outlook - Nutanix plans to continue investing in Kubernetes and AI use cases, aiming to strengthen its market position and capture new revenue opportunities [59][89] - The company anticipates significant growth in Kubernetes adoption, with projections indicating that by 2029, 95% of organizations will run container applications in production [16][19] Additional Important Insights - The shift towards Kubernetes is seen as an opportunity rather than a threat to Nutanix's hyper-converged infrastructure (HCI) business, as it aligns with the company's vision of using software and servers to redefine infrastructure [95][98] - The integration of open-source technologies and a focus on enterprise capabilities are central to Nutanix's strategy, allowing customers to manage Kubernetes consistently across different environments [43][44] This summary encapsulates the key insights from the Nutanix update, highlighting the company's strategic direction, product innovations, and market positioning.

Core Insights - Nutanix, Inc. is hosting a webinar to discuss its cloud native capabilities, including the Nutanix Kubernetes Platform, Nutanix Data Services for Kubernetes, and Nutanix Enterprise AI [1] - The webinar is scheduled for June 13, 2025, at 8:00 a.m. PDT and will be accessible via live webcast and replay on the Nutanix Investor Relations website [2] - Nutanix is recognized as a global leader in cloud software, providing a unified platform for application management and data handling across hybrid multicloud environments [2] Company Overview - Nutanix simplifies operations for organizations, allowing them to focus on business outcomes by reducing complexity [2] - The company has established itself as a pioneer in hyperconverged infrastructure, gaining trust from companies worldwide for consistent and cost-effective hybrid multicloud solutions [2]

Group 1 - Nutanix (NASDAQ: NTNX) is currently trading around all-time highs, raising questions about its growth potential compared to investments made post-pandemic [1] - The stock has experienced a relatively quiet year, prompting investors to consider future growth opportunities [1] Group 2 - The analysis emphasizes the importance of understanding macroeconomic trends, corporate earnings, and financial statement analysis to uncover high-growth investment opportunities [1]

Core Insights - Nutanix's international operations are crucial for understanding its financial resilience and growth potential, especially in a global economy [2][3] Revenue Performance - The total revenue for Nutanix in the quarter was $638.98 million, reflecting a year-over-year increase of 21.8% [4] - International revenue breakdown shows mixed results, with Other Americas contributing $13.56 million (2.12%), which was a -27.66% surprise compared to expectations [5] - Asia Pacific generated $106.9 million (16.73%), falling short of the $112.49 million estimate by -4.97% [6] - Europe, the Middle East, and Africa accounted for $172.42 million (26.98%), exceeding expectations by +14.95% [7] Future Revenue Forecasts - Analysts project total revenue of $642.2 million for the current fiscal quarter, a 17.2% increase year-over-year, with contributions from Other Americas (3%), Asia Pacific (17.8%), and Europe, the Middle East, and Africa (23.7%) [8] - For the full year, total revenue is expected to reach $2.53 billion, a 17.6% increase from the previous year, with specific contributions from each region [9] Strategic Considerations - The reliance on global markets presents both opportunities and challenges for Nutanix, making the analysis of international revenue trends essential for forecasting future performance [10] - Analysts closely monitor these patterns due to the complexities of global interdependence and geopolitical factors [11]

Financial Performance - Total revenue for the three months ended April 30, 2025, was $638,983,000, representing a 21.7% increase from $524,577,000 in the same period of the previous year[19] - Net income for the three months ended April 30, 2025, was $63,363,000, compared to a net loss of $15,616,000 in the same period last year, indicating a significant turnaround[21] - The company reported a gross profit of $555,992,000 for the three months ended April 30, 2025, which is a 25% increase from $444,958,000 in the prior year[19] - Total revenue for the nine months ended April 30, 2025, was $1,884,660,000, up from $1,600,864,000 in the same period of 2024, representing a growth of approximately 17.7%[43] - Net income for the nine months ended April 30, 2025, was $149,716,000, compared to $1,326,000 for the same period in 2024, indicating a significant increase[26] - Gross profit for the three months ended April 30, 2025, was $555,992,000, with a gross margin of 87.0%[141] - Non-GAAP gross profit for the nine months ended April 30, 2025, was $1,658.98 million, up from $1,386.25 million for the same period in 2024, reflecting a growth of 19.6%[163] Revenue Breakdown - Product revenue increased to $345,479,000 for the three months ended April 30, 2025, up from $255,465,000, marking a 35.3% growth year-over-year[19] - Subscription revenue for the nine months ended April 30, 2025, reached $1,794,777,000, compared to $1,498,081,000 in 2024, reflecting an increase of about 19.8%[43] - Subscription revenue for the three months ended April 30, 2025, was $609,663,000, accounting for the majority of total revenue[142] - Subscription revenue for the three months ended April 30, 2025, reached approximately $330.0 million, up from $231.8 million for the same period in 2024, representing a growth of 42.3%[148] - Support, entitlements, and other services revenue increased by approximately $24.4 million, or 9%, for the three months ended April 30, 2025, compared to the same period in 2024, due to a 10% growth in the end customer base[201] Expenses and Costs - Operating expenses for the three months ended April 30, 2025, totaled $507,347,000, up from $456,546,000, reflecting an 11.1% increase year-over-year[19] - The company reported stock-based compensation expenses of $83.998 million for the nine months ended April 30, 2024, compared to $85.969 million for the same period in the previous year, showing a slight decrease of 2.3%[23] - Sales and marketing expenses rose to $775,185 thousand for the nine months ended April 30, 2025, reflecting an increase of $57,259 thousand or 8% compared to the prior year[209] - The percentage of total revenue attributed to sales and marketing expenses was 44.8% for the nine months ended April 30, 2025, compared to 41.1% in the prior year[209] Cash Flow and Liquidity - Cash and cash equivalents decreased to $655,270,000 as of July 31, 2024, from $872,599,000 as of April 30, 2025, indicating a reduction in liquidity[17] - Net cash provided by operating activities for the nine months ended April 30, 2025, was $601,927,000, compared to $428,234,000 for the same period in 2024, showing a growth of approximately 40.5%[26] - Cash, cash equivalents, and restricted cash at the end of the period on April 30, 2025, totaled $872,626,000, up from $600,158,000 at the end of the previous period, marking an increase of about 45.2%[26] Shareholder Information - Nutanix issued 3,274 thousand shares through employee equity incentive plans, contributing $547 thousand to paid-in capital during the nine months ended April 30, 2024[23] - The company repurchased approximately 0.6 million and 0.9 million shares of Class A common stock during the three and nine months ended April 30, 2025, for an aggregate purchase price of approximately $37.5 million and $57.5 million, respectively[107] - As of April 30, 2025, approximately $161.4 million remained available for future share repurchases under the Board's authorization[107] Strategic Initiatives - The company plans to continue investing in research and development to enhance its solutions and expand its product offerings, particularly in generative artificial intelligence and multicloud environments[11] - Nutanix aims to improve operational efficiencies and reduce sales and marketing expenses as a percentage of revenue while focusing on major accounts and pipeline growth[11] - The company continues to focus on operational efficiencies and profitable growth through investments in solutions and sales and marketing[139] - The company plans to invest in sales and marketing to support growth, expecting an increase in sales and marketing expenses in the near term[167] Customer Metrics - Total end customers increased to 28,490 as of April 30, 2025, up from 25,860 in the previous year[141] - Approximately 77% of end customers who have been with the company for 18 months or longer have made a repeat purchase, with total lifetime orders averaging 9.4 times greater than the initial order[175] - The net dollar-based retention rate (NRR) as of April 30, 2025, was 110%, down from 117% a year earlier[176] Accounting and Compliance - The company has adopted new accounting standards related to convertible debt instruments, which may impact future financial reporting[38] - The company operates a subscription-based business model, allowing customers flexibility in choosing license levels and durations based on their needs[32]

Q3 FY2025 Earnings May 28, 2025 Safe Harbor Non-GAAP Financial Measures and Other Key Performance Measures To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, this presentation includes the following non-GAAP financial and other key performance measures: non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income per share (diluted), free cash flow, Annual Recurring Revenue (or ARR), ...

Group 1 - The current market environment is characterized as a stock picker's market, with major indices rebounding sharply near year-to-date highs, suggesting a need for careful stock selection to prepare for a potential market correction [1] - The strategy recommended involves pruning out richly valued growth stocks, indicating a focus on value investing in the current climate [1] - The analyst, Gary Alexander, has extensive experience in technology sectors, having worked on Wall Street and in Silicon Valley, which informs his insights into current industry trends [1] Group 2 - Gary Alexander has been a contributor to Seeking Alpha since 2017 and has been quoted in various web publications, indicating his established presence in the investment community [1] - His articles are syndicated to popular trading apps like Robinhood, which suggests a broad reach and influence among retail investors [1]

Core Insights - Nutanix reported revenue of $638.98 million for the quarter ended April 2025, marking a year-over-year increase of 21.8% and an EPS of $0.42 compared to $0.28 a year ago, exceeding the Zacks Consensus Estimate of $626.12 million by 2.06% [1] Financial Performance - Total Billings reached $647.05 million, below the average estimate of $676.02 million from four analysts [4] - Annual Recurring Revenue (ARR) was reported at $2.14 billion, slightly below the average estimate of $2.17 billion from four analysts [4] - Professional services billings were $18.48 million, significantly lower than the average estimate of $32.78 million from three analysts [4] - Subscription billings amounted to $627.25 million, surpassing the average estimate of $616.58 million from two analysts [4] - Other non-subscription product billings were $1.32 million, below the average estimate of $1.68 million from two analysts [4] Revenue Breakdown - Revenue from support, entitlements, and other services was $293.50 million, below the average estimate of $312.03 million from eight analysts, reflecting a year-over-year change of +9.1% [4] - Product revenue was $345.48 million, exceeding the average estimate of $310.26 million from eight analysts, representing a year-over-year increase of +35.2% [4] - Professional services revenue was $28 million, slightly below the average estimate of $28.12 million from seven analysts, with a year-over-year change of +6.7% [4] - Subscription revenue reached $609.66 million, above the average estimate of $594.37 million from seven analysts, indicating a year-over-year increase of +25.3% [4] - Non-portable software revenue was $0.50 million, significantly below the average estimate of $2.59 million from seven analysts, showing a drastic year-over-year decline of -95.5% [4] Stock Performance - Nutanix shares have returned +15.3% over the past month, outperforming the Zacks S&P 500 composite's +7.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]